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Overview

Private companies and multinationals have been around since the beginning of recorded history. For both good and ill they have done an immense amount to shape human culture around the world. We have just come through a period in history when communist and socialist societies tried to eliminate or severely constrain private enterprise, but companies are now back, big time.

Consequently, the question now is: ‘What is their role in our global economic and social system?’ Providing goods and services and making a profit for their shareholders are important, but in that process, they also have responsibilities to their stakeholders and the wider society.

Companies are in fact corporate citizens of society; just as individuals are private citizens. They exercise certain rights but also have profound responsibilities. They have to step up as good citizens and use their power and influence to help humanity face the challenges of the future. This book discusses why and how they must do that as a step towards learning to live with modern capitalism.

Product Details

About the Author

David Logan is co-founder of Corporate Citizenship, the international consultancy widely regarded as a ‘one-stop shop’ for consulting on all aspects of corporate responsibility and sustainability. He has worked in the public, non-profit and private sectors and has 38 years of practical experience on frontline corporate responsibility and sustainability work.

He is a graduate of London University, with a Masters in Philosophy and an Advanced Diploma in Education. He is an Associate Fellow at the Doughty Centre for Corporate Responsibility at Cranfield University in the UK.

Table of Contents

DedicationAcknowledgementsPreface

PART 1: THE HISTORICAL AND CULTURAL CONTEXTIntroductionChapter 1: Private Companies Are Part of the Development of Human CultureThe World’s First MultinationalsThe Early European MultinationalsThe Great Change of DirectionFree Enterprise’s Other CriticsBusiness Responds to the New World Order

Chapter 2: The Resurgent For-Profit SectorWhy Did It Make a Comeback?Wealth Creation MattersThe Profit Motive Drives a Connection With Human Needs and WantsGovernments and Non-Profits Are in BusinessBusiness Is More Than Just Making Profits

Chapter 3: The Rise of a Global Social SystemPrivate Companies Help Complete the Mix of Social InstitutionsThe Rise of the Non-Profit SectorThe American Model?The Emergence of Stakeholder TheoryThe Emergence of Global ValuesGlobal Interconnectedness

Chapter 4: The World Companies Now Live inToday’s Mix of Social SectorsGlobal Companies in the Global SystemGovernmentThe Non-Profit SectorThe Informal Sector

Chapter 5: Working Together?Interaction Already HappensSector Cultures and PsychologiesThe Emotional Posture of GovernmentThe Emotional Posture of the Non-Profit SectorThe Emotional Posture of the For-Profit SectorCollaboration is Hard Work

PART 2: MANAGING THE COMPANY AS A CORPORATE CITIZENIntroduction

Chapter 6: What is Corporate Citizenship?Defining Our TermsCompanies and the LawStakeholders and Corporate CitizenshipEmpowering StakeholdersThe Wider SocietyMapping the Scope of Corporate Citizenship TodayCompanies Are Human Institutions

Chapter 7: Why Be a Good Citizen?Openness About Motives Is VitalDifferent Motives for ‘Doing the Right Thing’The Founder’s ValuesBuilding the BusinessSaving CostsPromoting Mutual BenefitsUnavoidable ChallengesIt is Just the Right Thing to DoThe Importance of ValuesThe Johnson & Johnson CredoThe Values CascadeThe Need for Openness About Performance

Chapter 8: The Management ChallengeDeveloping the Capacity to ContributeCompanies As Agents of the MarketManaging CitizenshipLeadership From the TopAn Internal Management CapacityManaging TransparencyWorking With OthersTop-down or Bottom-up?

Chapter 9: Corporate Citizenship and the Future of CapitalismCapitalism Is BackCapitalism and Good CitizenshipCompanies Need Manageable PrioritiesCompanies As a Force for GoodCorporate Citizenship As Part of Shaping a New Future

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